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METALS-Industrial metals rise on risk appetite, but firm dollar weighs

METALS-Industrial metals rise on risk appetite, but firm dollar weighs

· 02/05/2021 01:52
METALS-Industrial metals rise on risk appetite, but firm dollar weighs

Recasts, updates prices, adds quotes

By Mai Nguyen

- Most industrial metals rose on Friday as appetite for riskier assets returned following a fading GameStop-style frenzy, but prices were still under pressure from a stronger dollar.

LME three-month copper CMCU3 rose 0.7% to $7,876.50 a tonne by 0606 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange SCFcv1 rose 1% to 58,190 yuan ($8,988.68) a tonne.

LME aluminium CMAL3 rose 0.4% to $2,001 a tonne, nickel CMNI3 advanced 1.4% to $17,900 a tonne and zinc CMZN3 increased 1.2% to $2,658 a tonne.

ShFE aluminium SAFcv1 increased 1.9% to 15,465 yuan a tonne, nickel SNIcv1 climbed 2.1% to 132,860 yuan a tonne, while lead SPBcv1 climbed 2% to 15,280 yuan a tonne.

"The meme stocks are gone .. washed down the drain so no more forced liquidation by funds to pay for their losses on those," said a metals trader, referring to a recent trading frenzy involving GameStop Corp GME.N and silver. nL1N2KA2C1

"So everything can now go up, but commodities' upside is capped due to strong USD," the Singapore-based trader.

The dollar .DXY, which was heading for its best weekly gain in three months, made greenback-priced metals on the London Metal Exchange more expensive to holders of other currencies. nL4N2KB037

Meanwhile, markets in China, the world's biggest metals user, will close from Feb. 11-17 for Lunar New Year holidays, potentially slowing demand for industrial metals.


FUNDAMENTALS

* Cash tin on the LME was at a $990 a tonne premium over the three-month contract CMSN0-3, indicating tight nearby supplies. LME tin inventories MSNSTX-TOTAL fell to 810 tonnes, hovering around the lowest level since May 2019.

* Indonesia has received an investment proposal from U.S. electric vehicle maker Tesla TSLA.O, the country's deputy head for investment and mining coordination, Septian Hario Seto, said. nL4N2KB15H

* For the top stories in metals and other news, click

TOP/MTL or MET/L


($1 = 6.4737 yuan)


(Reporting by Mai Nguyen; Editing by Rashmi Aich and Amy Caren Daniel)

((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))

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